REG - Directa Plus PLC - Trading Update and Notice of Results

Directa PlusAnnouncement

12/02/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240212:nRSL7306Ca&default-theme=true

RNS Number : 7306C  Directa Plus PLC  12 February 2024

12 February 2024

 

Directa Plus plc

("Directa Plus", the "Group" or the "Company")

 

Trading Update and Notice of Results

 

Directa Plus (AIM: DCTA), a leading producer and supplier of graphene
nanoplatelets based products for use in consumer and industrial markets,
announces an update on trading for the year ended 31 December 2023 ("FY23")
and on current trading and outlook.

 

The Group made strong progress in 2023, securing new contracts across key
geographies and in all verticals whilst further developing the Company's
innovative graphene-based products. Subject to completion of the audit
process, the Group expects to report revenues for FY23 of c. €11m, with an
improvement in adjusted EBITDA loss of at least 20% from 2022, slightly ahead
of consensus market expectations(1). Cash at the period end is expected to be
€2.4m, c.14% ahead of expectations(1), reflecting the Board's continued
focus on the improvement in the gross margin.

 

Highlights in the year include a €5.5m three-year contract with LIBERTY
Galati in the Group's Environmental division and, in Textiles, the Group
agreed a significant expansion of its exclusive supply agreement with MC Armor
in Latin America in addition to longstanding customer Grassi doubling its
orders from the previous year. The Group also continued to enhance and adapt
its technology, including the accelerated development of its graphene
compounds for application in battery and polymer markets and the launch of
Graphito, an eco-denim textile, in June 2023.

 

In 2024, Directa Plus is seeing increasing traction, including the €1.9m
contract renewal with FORD Otosan in Romania and the first Textiles order with
the Group's distributor in Turkey to commence industrial production of G+
textile technologies in the Turkish textile industry. The Group is encouraged
by a renewed interest for Grafysorber® in Middle East and Southeast Asia, and
by an increased demand in the defence sector, for both personnel protection
and comfort, which is leading to the creation of a dedicated business unit.

 

With momentum and increased engagement across all verticals, and a
strengthening pipeline of opportunities, the Board is also optimistic of
delivering potential new material contracts in the short term. The current
order book for delivery in 2024 stands at c. €7.8m, mostly made of recurring
clients, further reinforcing the Board's confidence for increased traction in
the year ahead.

 

Notice of results

The Company expects to announce its audited results for FY23 in first half of
May 2024.

 

Giulio Cesareo, Founder and Chief Executive of Directa Plus, commented: "The
Group achieved a strong financial performance in FY23, with improved margins
as a consequence of an increasing value appreciation of our technology,
successful investment in innovation and direct cost reduction. We have entered
FY24 with good momentum and are seeing increasing traction in graphene
technology and its applications. As the market grows globally, we are
confident in our ability to capitalise on the opportunity ahead with Directa
Plus well positioned to scale its activities."

1)    The Company understands that consensus market expectations for the
year ended 31 December 2023 are for revenues of €12m an EBITDA loss of
-€2.5m and cash of €2.1m (Source: Bloomberg)

 

For further information please visit or contact:

 

 Directa Plus plc                                                        +39 02 36714458
 Giulio Cesareo, CEO
 Giorgio Bonfanti, CFO

 Cavendish Capital Markets Limited (Nominated Adviser and Joint Broker)  +44 131 220 6939
 Neil McDonald
 Adam Rae

 Singer Capital Markets Securities Limited (Joint Broker)                +44 20 7496 3069
 Rick Thompson
 Phil Davies

 Alma Strategic Communications                                           +44 20 3405 0205
 Justine James                                                           directaplus@almastrategic.com
 Hannah Campbell
 Kinvara Verdon

 

 

Notes to Editors

 

Directa Plus (www.directa-plus.com) is one of the largest producers and
suppliers of graphene-based products for use in consumer and industrial
markets. The Company's graphene manufacturing capability uses proprietary
patented technology based on a plasma super expansion process. Starting from
natural graphite, each step of Directa Plus' production process - expansion,
exfoliation and drying - creates graphene-based materials and hybrid graphene
materials ready for a variety of uses and available in various forms such as
powder, liquid and paste.

 

This proprietary production process uses a physical process, rather than a
chemical process, to process graphite into pristine graphene nanoplatelets,
which enables Directa Plus to offer a sustainable, non-toxic product, without
unwanted by-products.

 

Directa Plus' products are made of hybrid graphene materials and graphene
nano-platelets. The products (marketed as G+(R)) have multiple applications
due to its properties. These G+(R) products can be categorised into various
families, with different products being suitable for specific practical
applications.

 

Directa Plus was established in 2005 and is based in Lomazzo (Como, Italy) and
has been listed on the AIM market of the London Stock Exchange since May 2016.
Directa Plus holds the Green Economy Mark from London Stock Exchange which
recognises companies that contribute to the global green economy.

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTQKDBQKBKBABD